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share premium

shilpi (article) (31 Points)

27 March 2019

can share premium amount be utilized for business purpose by amending by laws.

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Radhey Shyam Jha (Student) (1580 Points)
Replied 27 March 2019

Section 52 of the Companies Act, 2013 Securities Premium account applied towards
1. issues of unissued shares to the members as fully paid bonus shares
2. writing off preliminary expenses
3. writing off commission paid or discount allowed on issues of shares or debenture
4. premium payable on redemption of redeemable preference shares
5. purchase of its own shares or other securities under section 68.

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shilpi (article) (31 Points)
Replied 27 March 2019

Even if right issue is made at premium? in right issue we don't have to open separate bank account so we can utilize it sec 52 speaks about share premium account.